VANCOUVER, British Columbia—Pure Industrial Real Estate Trust has obtained acquisition financing for eight of the 11 properties in a FedEx distribution center portfolio that marked the locally based REIT's entry into the US market last year. HFF obtained a $98.5-million fixed-rate loan with a term of seven years through Guggenheim Commercial Real Estate Finance's Chicago office. The HFF debt placement team representing PIRET was led by director Kenneth Martin and real estate analyst Federico Boscaini.
The portfolio covered by the financing from Guggenheim is 100% net leased to FedEx and totals 1.49 million square feet. It includes properties in City of Industry, CA; West Palm Beach, FL; Rock Island and Wheeling, IL; Barrington and Dover, NJ; and Pflugerville and Schertz, TX.
Real Capital Analytics data identify these facilities as part of an 11-property portfolio that PIRET acquired from Carmel, IN-based Scannell Properties, the original build-to-suit developer, for a total of $235 million. The sale also included FedEx facilities in Baton Rouge, LA and Newton, NC as well as one in Montreal, the smallest of the group at 106,263 square feet. The Barrington, NJ facility will receive a 59,600-square-foot addition that's being developed in partnership with Scannell, bringing that property's total square footage to about 257,000 square feet.
Six of the assets were already income-producing properties when PIRET agreed to the portfolio acquisition in June 2014, according to regulatory filings. The properties in Illinois, Louisiana and Texas were under development at the time of the sale, and were scheduled to deliver between August of last year and this past February.
Subsequent to the acquisition of the FedEx portfolio, PIRET increased its US holdings with a 51% share of a joint venture in three distribution and warehouse facilities in the Greensboro/Winston-Salem, NC metro area. As of April 10, it controlled an industrial portfolio of 17.4 million square feet and 173 properties, including 13 in the US.
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